ABC Impact closes initial tranche of investment in Ayala’s AC Health

INVESTMENT FIRM ABC Impact Fund II LP has closed its initial tranche investment in the Ayala group’s healthcare arm Ayala Healthcare Investment Holdings, Inc. (AC Health).

ABC Impact finalized its investment by subscribing to 121.09 million common shares and 208.28 million redeemable preferred shares in AC Health, Ayala Corp. said in a disclosure on Tuesday.

“The transaction is aligned with AC Health’s vision of transforming healthcare for every Filipino, by building a seamless and integrated healthcare ecosystem,” it said in a statement.

Singapore-based ABC Impact operates under Temasek Trust Asset Management and is supported by Temasek Trust, Temasek, the Asian Development Bank, and other institutional investors.

The subscription made on Monday is part of ABC Impact’s initial committed investment tranche, giving it an estimated 16% economic interest in the company.

“The investment supports AC Health’s expansion across its core pillars of hospitals, multi-specialty clinics, and retail pharmacies — through a combination of organic initiatives and targeted acquisitions,” Ayala Corp. said.

As part of its growth strategy, AC Health intends to expand its network by 2027 to at least 10 hospitals, 300 clinics, and 1,150 pharmacies, with support from the recent investment.

AC Health, the healthcare unit of Ayala Corp., is structured around two core segments — provider and pharma. Its businesses include Healthway Medical Network, Generika Drugstore, pharmaceutical distributors IE Medica and MedEthix, and the St. Joseph Drug pharmacy chain.

Ayala Corp. shares closed at P543 on Tuesday, down P3 or 0.55%. — Alexandria Grace C. Magno